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P. Viswanathan and ors. Vs. P. Brahmanadhan - Court Judgment

LegalCrystal Citation
CourtChennai
Decided On
Judge
Reported in34Ind.Cas.900
AppellantP. Viswanathan and ors.
RespondentP. Brahmanadhan
Excerpt:
trusts act (ii of 1882), section 23(f) - trust, breach of--employment of trust moneys in, private trade or business--liability of trustee--interest in excess of statutory rate, award of. - .....the other members of the firm, and affords no sufficient ground for not applying the statutory provision as to the rate of interest payable in respect of their breach of trust. that decree must be modified accordingly, and further the counter-interest at 7 1/2 per cent. allowed to the appellants on moneys expended by them for the minor must be reduced to 6 per cent. the decree must be varied accordingly and the appeal allowed with costs. costs of the next friend will be paid out of the estate.
Judgment:

1. We agree with the learned Judge that, as stated at the beginning of his judgment, the appellants may be guilty of a breach of trust and are bound to replace the minor's money and to account for any profits made therewith.

2. He is, however, liable under Section 23 (6) of the Indian Trusts Act at the option of the beneficiary either to account with compound interest at six per cent. with half-yearly rests or to account for the net profits made by the employment of the minor's money. The respondent in this case does not want the net profits and, therefore, he is only entitled to compound interest at this rate, and not at twelve per cent. as awarded by the learned Judge. It is said, however, for the respondent that the defendants have, admitted their liability for interest at 7 1/2 per cent., but that was merely as debtors all conjointly with the other members of the firm, and affords no sufficient ground for not applying the statutory provision as to the rate of interest payable in respect of their breach of trust. That decree must be modified accordingly, and further the counter-interest at 7 1/2 per cent. allowed to the appellants on moneys expended by them for the minor must be reduced to 6 per cent. The decree must be varied accordingly and the appeal allowed with costs. Costs of the next friend will be paid out of the estate.


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